Replenish Location by Transfer Order

When you need to replenish stock at multiple locations, you need to know the best way to divide the available quantity of stock. The Replenish Location by Transfer Order page enables you distribute inventory across locations to allocate the right quantity for each store at the right time.

For items that have designated reorder points and preferred stock levels, distribution managers can review inventory shortages across multiple locations and create transfer orders that move items from one location to any locations where shortages are found.

Replenishing a location by transfer order enables you to quickly create a large number of transfer orders to distribute goods out of a source warehouse into multiple stores or warehouses.

The Replenish Location by Transfer Order page creates a a transfer order, not a basic inventory transfer. For details about transfers and transfer orders, read Inventory Replenishment and Withdrawal and Replenish Location by Inventory Transfer.

To use the Replenish Location by Transfer Order form, you must have these features enabled in your account:

• Multi-Location Inventory

• Advanced Inventory Management

For NetSuite OneWorld accounts, intercompany transfer orders are supported, so you can replenish a location by transfer order when there is a need for transfers across subsidiaries.

You must first setup reorder points and a preferred stock level for items that will need replenishment. Set up items at Lists > Accounting > Items. Read more details in Entering Purchasing and Inventory Information on Items.

To replenish a location by transfer order:

1. Go to Transactions > Inventory > Replenish Location by Transfer Order.

2. The current date autofills the Date field. Enter a different date if needed. This date populates in the header on the transfer orders created.

3. In the From Subsidiary field, select the subsidiary where the items will be taken from. The selection you make in this field determines which locations are available to be selected in the From Location field.

   For example, if you select Subsidiary B here, you can choose a source location from a list of locations limited to only those associated with Subsidiary B.

   Note:

   This field is required. This field shows only in OneWorld accounts.

4. In the To Subsidiary field, select the subsidiary where the items are to be received. The selection you make in this field determines which locations are available to be selected in the To Location field.

   For example, if you select Subsidiary B here, you can choose a destination location from a list of locations limited to only those associated with Subsidiary B.

   This field is optional. This field shows only in OneWorld accounts.

5. In the From Location field, select the location where you want to remove items. The location you choose will have its inventory reduced.

6. In the To Location field, select the location where you want to send the items. The location you choose will have its inventory increased.

7. Select a Department or Class to associate with this transfer as needed. These classifications populate in the header on the transfer orders created.

8. Check the Use Distribution Network box if you use the Distribution Resource Planning feature and want to use a distribution network that you have set up.

   After you have set up the Distribution Resource Planning feature, NetSuite can transfer inventory based on the established relationships between the source and destination location. If an item is associated with a distribution category and a distribution network, NetSuite can use the bill of distribution to replenish the location by transfer order. When you check the Use Distribution Network box on the Replenish Location by Transfer Order form and the From Location is selected, NetSuite displays in the To Location field only locations that are associated by the preset bill of distribution and that require inventory based on preset reorder parameters.

   For more details about the Distribution Resource Planning feature, read Distribution Resource Planning.

9. If you use the Multiple Units of Measure feature, in the Unit field, choose to display item quantities in the Base Unit or Stock Unit of measure.

10. Use the Create Transfer Order Based on Available Quantity preference to determine the method for calculating the quantity to transfer.

    For example, your Atlanta warehouse periodically receives a shipment from overseas of 50 purple swimsuits. Then, the warehouse needs to distribute inventory out of the warehouse and into the retail locations. Retail store space is limited and each location has different needs:

    • Store 1 requested 50 purple swimsuits

    • Store 2 requested 20 purple swimsuits

    • Store 3 requested 30 purple swimsuits

    • Clear this box to create a transfer order showing a quantity based on demand at the receiving location.

    • Check this box to create a transfer order showing a quantity based only on supply at the source location. This option does not transfer more than the amount currently available in the source location. When this box is checked, the Shortage Calculation Method field is available.

      For example, the warehouse has a fixed amount of stock to cover the shortages at all retail locations.

      • If the total amount of warehouse stock is more than the total amount requested by retail stores, the needed items can be transferred immediately.

      • If the total amount of warehouse stock is less than the total amount requested by retail stores, NetSuite uses a shortage handler. See the Shortage Calculation Method description below for details.

11. When the Create Transfer Order Based on Available Quantity box is checked, you can make a selection in the Shortage Calculation Method field. A shortage means the source location does not have enough stock to cover the total quantity requested by all locations and you must decide the best method to distribute the amount available. The following shortage distribution options are available:

    • Distribute Manually – NetSuite does not calculate an amount to transfer. The transfer quantity defaults to zero and you manually enter the appropriate quantity to transfer.

    • Distribute Evenly Across Locations – NetSuite divides the quantity available at the From Location evenly across all locations that need this item.

      Based on the previous example when the warehouse has a total quantity of 50, then Store 1, Store 2, and Store 3 each receive a quantity of 16.

    • Distribute By Percentage of Total Requested – NetSuite distributes items based on the quantity each location has requested.

      For example, if one location has requested a higher quantity than another location, then NetSuite distributes more of the source items available to that location.

      Based on the previous example when the warehouse has a total quantity of 50, then stores receive the following quantities:

      • Store 1 requested 50. It receives a quantity of 25.

      • Store 2 requested 20. It receives a quantity of 10.

      • Store 3 requested 30. It receives a quantity of 15

    Note:

    The Shortage Calculation Method column displays an icon only when a shortage exists.

    When there is no shortage, the transfer quantity is automatically set to the quantity required for the To Location, even if the shortage calculation method is set to Distribute Manually.

12. Check the box next to each item you want to transfer.

    An item shows in the list when the stock level is at or below the reorder point per location.

13. In the Shortage column, an icon displays a warning if the source location cannot fill the full amount requested by the location.

    In the View field, you can select View Shortages Only to filter the list for items that have a shortage warning.

14. The Lead Time column displays the default lead time for this item. NetSuite sources the lead time from the following in this order:

    1. Lead Time set on the Bill of Distribution (when Distribution Resource planning is used)

    2. Lead Time set on the Item Record

    3. Lead Time set at Inventory Management Preferences

15. The following columns display the current item quantity at the location requesting items: Available, On Order, Back Ordered, Reorder Point, Preferred Stock Level.

    This information can be used to make decisions about transferring inventory. For example, you can compare the Available quantity with the Preferred Stock Level for an item to determine if you need additional stock.

16. For each item listed, NetSuite suggests a quantity to transfer in the Transfer Quantity column. The suggested amount is based on your preference settings. You can accept this amount or enter a new amount.

    Note:

    You cannot transfer a quantity greater than the Available quantity.

17. Optionally click the Calculator icon to display the information used to calculate the suggested transfer quantity.

18. The Transfer Price column displays the transfer price indicated on the item record.

19. Click Submit.

The transfer orders created are consolidated if the From Location and To Location are the same.

The following applies for transfer orders created in NetSuite OneWorld accounts:

• When the parent subsidiary is same, a transfer order is created.

• When parent subsidiary is not the same, an intercompany transfer order is created.

If you use approval routing, the Replenish Location by Transfer Order page will continue to indicate that items are needed until the transfer orders created upon submission are approved. After approval, the item quantities show as On Order.

Status

After submitting the form, you can view the status of order creation at Transactions > Inventory > Replenish Location by Transfer Order > Status.

The status list displays the following about each transfer order created:

• From Subsidiary (for NetSuite OneWorld accounts)

• To Subsidiary (for NetSuite OneWorld accounts)

• From Location

• To Location

• Status

• Transfer Order number

  You can click this link to open the order.

Reorder Multiples

The recommended transfer order quantity does respect the reorder multiple setting on the item record.

When there is a supply shortage at the source location, the reorder multiple may not be satisfied. If the transfer quantity cannot reach the reorder multiple, NetSuite will recommend a zero transfer quantity.

For example, the following is true:

• Available Quantity (From Location) : 100

• Reorder Multiple : 40

• Quantity Required (To Location)

  • without reorder multiple: 90

  • with reorder multiple: 120

In this case, NetSuite recommends a quantity to transfer of zero because the requirement of 120 using the reorder multiple cannot be met.

For more information on reorder multiples, read Entering Purchasing and Inventory Information on Items.

Related Topics

Multi-Location Inventory

Transferring Inventory

Inventory Transfer Orders

Transfer Order Preferences

Entering a Transfer Order

Approving Transfer Orders

Fulfilling Transfer Orders

Pick, Pack, and Ship with Transfer Orders

Receiving Transfer Orders

Closing Transfer Orders

General Notices